NuScale Power Stock Surges 3% Pre-Market After Canaccord Ups Price Target To $60 On Major TVA Nuclear Deal

NuScale Power Corp. (SMR) shares rose 3% in premarket trading on Wednesday after Canaccord raised its price target on the company to $60 from $44 following its deal to collaborate with the Tennessee Valley Authority (TVA) to provide up to six gigawatts of new nuclear power generation.

On Monday, TVA announced an agreement with ENTRA1 Energy, which is NuScale's strategic partner. Under the agreement, the companies will collaborate to develop plants to provide new nuclear power generation on sites in TVA's seven-state region through the deployment of six ENTRA1 Energy Plants.

Canaccord maintained its ‘Buy’ rating on NuScale Power, according to TheFly. The firm noted that the TVA and ENTRA1 Energy partnership is an important first step in advancing the deployment of advanced nuclear technology in America, with ENTRA1's immediate strategy being to utilize NuScale's SMR equipment within ENTRA1 Energy Plants.

Retail sentiment on NuScale Power improved to ‘bullish’ from ‘bearish’ territory a day ago, with message volumes at ‘high’ levels, according to data from Stocktwits.

The retail user message count on the company jumped 1,360% in the last 24 hours on Stocktwits. A bullish user on Stocktwits noted that NuScale Power shares could hit $45 in Wednesday’s trading.

TVA said that this collaboration could provide enough energy to power the equivalent of approximately 4.5 million homes or 60 new data centers. ENTRA1 aims to develop and own a portfolio of power infrastructure assets, selling the output to TVA under future power purchase agreements.

Shares of NuScale Power have jumped 107% this year and have soared 362% in the last 12 months.

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